Mosaic Brands Announces Closure of Five Clothing Store Chains

Mosaic Brands, a major player in the Australian clothing retail sector, has announced the closure of five of its store brands as part of a strategic move to “re-align and simplify” its operations. The decision was disclosed in a business update submitted to the Australian Securities Exchange (ASX) and involves the cessation of operations for Rockmans, Autograph, Crossroads, W.Lane, and BeMe stores and their associated websites.

In its 2023 annual report, Mosaic Brands listed over 200 physical stores under its Rockmans, Autograph, and W.Lane brands, while BeMe and Crossroads were noted as operating exclusively online. The company’s CEO, Erica Berchtold, described these brands as having become “marginal and non-core”. She articulated that the closures are aimed at enabling the company to concentrate efforts and resources on what she termed as “five core growth brands” which include Millers, Noni B, Rivers, and Katies, alongside a standalone online Mosaic marketplace.

“Each of those core brands will have a clearly differentiated market proposition, target customer, price point and product range,” Ms. Berchtold explained. The company also expressed intentions to reassign staff affected by the closures where feasible and emphasized their ongoing commitment to servicing regional Australia.

The news comes after recent challenges faced by Mosaic Brands, including a compulsory trading suspension on September 2 due to their failure to submit its annual financial report. Additionally, the Australian Competition and Consumer Commission (ACCC) had initiated proceedings against Mosaic in March 2024 following numerous consumer complaints regarding advertised delivery timelines. Furthermore, in May 2023, Mosaic had been involved in issues concerning long service leave entitlements.

Mosaic Brands has committed to providing further details about its restructuring plans in the upcoming weeks. The company’s strategic shift aims to strengthen its market position by eliminating underperforming brands and reinforcing more successful and strategically aligned ones.